On December 16, 2024, McNally Bharat Engineering Company Limited (MBECL) made a significant disclosure regarding the extension of its Resolution Plan. The National Company Law Tribunal (NCLT), Kolkata Bench, approved the extension of the implementation of the plan for BTL EPC Limited, a critical step in resolving the company's ongoing Corporate Insolvency Resolution Process (CIRP). The extension, confirmed by NCLT’s order on December 3, 2024, addresses the concerns raised by Bank of India, a significant creditor in the process.

Key Developments:

The extension involves adjustments to the payment schedule of the Resolution Plan. The cash payments outlined in the plan will be made in three tranches with the first tranche of Rs. 65 Crore required to be paid within 24 hours of the order’s uploading. The second and third tranches are scheduled for payment by February 28, 2025, and March 26, 2025, respectively. If the SRA (Successful Resolution Applicant) fails to meet these payments, the Bank of India will have the right to forfeit all monies already paid.

The order also addresses the issues of account upgrades, penalties, and the treatment of Bank Guarantees (BG). The SRA has agreed to a series of obligations, including withdrawing pending cases and applications related to the Resolution Plan. These changes reflect the ongoing negotiations and efforts to resolve the outstanding issues within the insolvency process.

NCLT’s Role:

The National Company Law Tribunal (NCLT) continues to play a crucial role in managing the resolution process and approving modifications to the plan. With Bank of India agreeing to the revised terms, the plan will proceed under the supervision of the Monitoring Committee. The NCLT’s December 3 order provides clarity on the path forward and sets new deadlines for the resolution process to ensure compliance.

Next Steps:

The Bank of India has expressed that the revised payment structure is now acceptable, but has left open the possibility of reviving previous applications if payments are delayed. The next hearings for the unresolved applications are scheduled for January 31, 2025.

McNally Bharat Engineering is expected to continue with the implementation of the resolution plan, marking an important milestone for the company as it works towards exiting the insolvency process and restoring financial stability. This development underscores the importance of corporate restructuring processes under the Insolvency and Bankruptcy Code (IBC) in India.

The Upcoming IPOs in this week and coming weeks are NACDAC Infrastructure, Transrail Lighting, Mamata Machinery, Identical Brain Studios, Rosmerta Digital, Indo Farm, DAM Capital and Avanse Financial.

The Current active IPO is and International Gemmological, Hamps Bio, Yash Highvoltage and Inventurus Knowledge.

For more details on upcoming IPOs, you can visit our page at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with the latest news on IPO updates on Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi. Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in Choice Broking FinX.